Shiba Inu has captured attention across the cryptocurrency market after recording a significant spike in its burn rate. In just 24 hours, over 102 million SHIB tokens were permanently removed from circulation, representing a burn rate increase of more than 103,000 percent. This major supply reduction has raised speculation among investors that the token may be preparing for a strong price movement in the days ahead.

Token burns are used as a deflationary strategy in cryptocurrency. By reducing the available supply, the goal is to increase scarcity, which can potentially lead to price appreciation if demand remains consistent or rises. The latest SHIB burn is one of the largest in recent months, and it has renewed interest from market participants who are watching closely for signs of a breakout.

Although SHIB’s price dropped slightly in the last 24 hours, market analysts suggest this dip could be a short-term pause rather than a sign of weakness. The token continues to trade inside a descending channel, a price pattern often associated with downward trends. However, Shiba Inu recently bounced off a key support range between $0.0000100 and $0.0000120. This reaction indicates that buyers are stepping in at these levels, signaling a potential shift in momentum.

If the price manages to move above the upper resistance boundary of the channel, it may confirm a breakout and begin a new upward trend. Technical traders are closely watching this level, especially if the breakout is supported by increased volume. Breakouts from descending channels can be powerful, often leading to swift price rallies if market conditions support them.

One important on-chain signal backing a possible move higher is the sudden shift in exchange activity. According to CryptoQuant, more than 25 billion SHIB tokens were withdrawn from exchanges in a single day. This marks a 144 percent increase in exchange outflows, indicating that many investors are choosing to move their tokens into private wallets rather than keeping them on trading platforms.

This trend suggests growing confidence among holders and a lower likelihood of immediate selling. When tokens leave exchanges in large volumes, it often reflects accumulation and long-term investment behavior.

Another factor contributing to potential upward pressure is a sharp decline in volatility. SHIB’s current volatility is at 64.55 percent, the lowest level in the past 30 days. Periods of low volatility are often followed by major price movements as the market compresses before expanding. In past cases, SHIB has seen notable breakouts following similar periods of reduced volatility.

Additionally, the SHIB/USDT liquidation heatmap from CoinGlass reveals a dense cluster of short positions between $0.0000132 and $0.0000140. These short trades represent bets that the price will fall, and if the price rises into this zone, it could force those traders to close their positions quickly. This type of movement, known as a short squeeze, can push prices higher as traders buy back the token to cover their losses.

All of these factors—an aggressive burn rate, large-scale accumulation, low volatility, and key technical positioning—are aligning to create what some analysts see as a high-probability breakout setup. If the price successfully moves past resistance and triggers short liquidations, SHIB could see rapid gains in a short period.

However, if the price fails to break through the upper boundary of the current pattern, the token may remain in a period of sideways consolidation. In that case, traders will continue watching the charts for any changes in momentum.

With supply tightening and technical conditions in place, the coming days will be crucial in determining whether this move marks the beginning of a broader recovery in Shiba Inu’s price.